With January being the “Monday” of the year, you have either suffered post-seasonal depression dragging yourself through the first gruelling weeks, or the opposite and adopted a positive approach by setting out your plans for 2014.
February, here in Portugal, is the onset of spring. In this month, restaurants and hotels which have chosen to remain open over the winter still have decent reductions in their prices, and across the countryside the almond blossom has appeared to dust the Algarve with its unique snow.
This is also the time for preparing your tax return for 2013, organising your tax planning for 2014 and an excellent point to look around for opportunities, whether investing capital towards your personal financial portfolio or preparing your business for the high summer season.
What do we know so far to put a spring into February?
On a positive note in the wake of the annual Davos event last month, Europe and its currency is now perceived to be past its most serious, life-threatening challenges, and a likely break-up of the Eurozone at the bookies down from 70% to 30%.
Portugal is set to exit the obligations of the bailout set out by the Troika. Exports are growing and the outlook for property prices are looking up, with a Global Housing and Mortgage Outlook Report by credit agency Fitch published recently noting improvement in the Portuguese market.
Outside and elsewhere, emerging markets are starting to falter in a post-crisis phase as monetary policy in the developed world starts to tighten and their domestic economies show veritable signs of recovery.
After the threat of a Eurozone break-up, perhaps the next chapter is a potential return to growth within the continent. Could there be a second cycle of booming economic growth as with the last time Portugal received a bailout from the World Bank (now the IMF and one of the three elements of the Troika) in the late 80s?
What of our plans and goals for this forthcoming year? Will you choose to remain on a set course or to change, qualify or risk a new direction?
Portugal enjoys a period of political movement of fiscal and monetary targets. Taxpayers must navigate purposely, determinedly around these financial obstacles. Meandering through the system could possibly achieve you nothing bar a sore head and purse.
In your personal finances, you can choose both the direction and end goals that, in terms of long-term financial planning, represent your own desires and objectives. Without a clear understanding of both personal and public policies, invariably it is the smaller, private investors in Europe who will lose out.
For those willing to take a chance, there are a number of existing fiscal laws in Portugal that make investment ever more attractive. The first, which appears to grab the lion’s share of the headlines, is the Non-Habitual Residence programme, whereby qualifying foreigners who set up residency in Portugal can expect a 10-year exemption from Portuguese taxation on certain types of overseas income after taking up full-time residency.
For the existing resident, there is an 85% exemption on income on certain types of pension income such as annuities and occupational pensions, and also for invoiced income on sales and tourism activities, such as short-term holiday letting.
With these benefits in place, it could certainly help to ease the hardship of financial planning and ultimate long-term decision taking. Make sure that you gain the best possible objective opinion and advice that money can buy in what could be a very successful future.
By Raoul Ruiz Martinez
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Raoul Ruiz Martinez is a resident and independent consultant for Finesco Financial Services Ltd., Glasgow and advises clients on private financial matters in both the UK and throughout Europe under the MiFID regulation. Finesco Financial Services Ltd is authorised and regulated by the Financial Conduct Authority (FCA). Some of the services provided are not regulated by the FCA because they are not included within the Financial Services and Markets Act 2000. | 289 561 333
